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A Transaction Processing System (TPS) is a type of information system that collects, stores, modifies and retrieves the data transactions of an enterprise.Transaction processing systems also attempt to provide predictable response times to requests, although this is not as critical as for real-time systems.he first transaction processing systems was American Airlines SABRE system, which became operational in 1960. Designed to process up to 83,000 transactions a day, the system ran on two IBM 7090 computers.
Transaction processing systems consist of computer hardware and software hosting a transaction-oriented application that performs the routine transactions necessary to conduct business.Examples include systems that manage sales order entry, airline reservations, payroll, employee records, manufacturing, and shipping.he basic principles of all transaction-processing systems are the same. However, the terminology may vary from one transaction-processing system to another, and the terms used below are not necessarily universal.